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80. Topic: RETAINED EARNINGS Suppose your firm is going to nance a new project 100% with retained earnings. Your boss claims that since the earnings

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80. Topic: RETAINED EARNINGS Suppose your firm is going to nance a new project 100% with retained earnings. Your boss claims that since the earnings are already being retained and that since no outside nancing is required, the project should be evaluated at the riskfree rate of return. 15 this appropriate? Are retained earnings riskfree? Why or why not

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